Tuesday night three of the Wake Forest commissioners voted to extend the timeline of the nearly $1-million loan to the Wireless Research Center of North Carolina to 10 years with a large balloon payment in 2026. Commissioners Brian Pate and Margaret Stinnett voted no.
The board also heard that the controversial request to build seven townhouses on South Allen Road at the corner of Elm Avenue was withdrawn by developer Mark Iafrate on March 2, the day after the South Allen neighbors spoke firmly against the project and presented a petition signed by almost all the neighbors and others. A number of the neighbors were at Tuesday’s meeting because the request was part of the town board’s agenda.
The loan question sparked a discussion after Commissioners Anne Reeve and Greg Harrington made and seconded a motion to approve the extension as proposed by Gerald Hayes and Larry Steffann, the center’s president and general manager, respectively, during the board’s March 1 work session held at the center.
“The wireless center has done a wonderful job in Wake Forest, but to be good stewards we need to probably request an audit from the wireless center [that will] prove they are viable and able to repay the loan,” Stinnett said.
The loan, actually a line of credit, was made from the town’s Futures Fund. From 2011 through 2013 the center borrowe $948,950 from a possible $975,000, and made payments from July 21, 2013, through Feb. 5, 2016, so that at the end of February the loan balance was $904,584. The center proposed continuing to pay $4,750 monthly. In this coming December, the balance would be less than $875,000 and at that time the balance would be converted to a 10-year balloon with a 20-year amortization of 2.5 percent. The center pledged to continue to pay $4,750 each month and, once the center’s cash reserves exceed three months, the excess would also be applied to the principal of the loan.
Stinnett went on to say she would like to see it a five-year balloon with a review at the end of five years. She said it might be possible the center would be in a position to repay the full amount after five years.
“I don’t think we need to have an audit or a review at this time,” Mayor Vivian Jones said. “I think this is a reasonable extension.”
Harrington asked Finance Director Aileen Staples if she was still comfortable with the 10-year extension, and she answered yes. “Gerry and I have talked about getting things (a review of the loan) on a quarterly basis. They are very comfortable with that.”
“I think that would be fine,” Jones said.
“It seems like a reasonable thing,” Reeve said.
“We’re responsible to the citizens of Wake Forest as being good stewards of their money. This is a business decision and needs to be treated as such,” Stinnett said.
Jones asked for the vote, and the motion passed with Reeve, Harrington and Thompson voting yes.
The board had earlier unanimously approved the refunding of $5,125,000 in 2015 bonds.
The meeting began with a series of proclamations recognizing April as the Month of the Young Child and April 9-16 as the Week of the Young Child, recognizing Saturday, April 23, as Arbor Day in Wake Forest, and recognizing April as National Volunteer Month and April 1-16 as National Volunteer Week.
Tim Gardiner, who has appeared twice before with the Wake County Transit Plan, spoke about the recommended plan which should be approved by the county commissioners soon with a referendum planned for the fall on a sales tax increase to pay for it. The plan includes increased bus service for rural areas and small towns, more frequent and reliable bus service in Raleigh and light rail between Durham and Raleigh.
“We could provide 50 percent of funding for the local loop service,” Gardiner said. “So we could continue to have what we have now but we will have the possibility of expanded services,” Jones said. (She serves on the transit advisory board.) Part of that expansion would be increased bus service between Wake Forest and Raleigh.
Action on requests by George Mackie to annex his property on the east side of town has been postponed until the planning board hears the associated rezoning and master plan requests. It may be on the planning board agenda for April.
Dwayne Putnam and his wife, Alice Chalona, live on Main Divide Drive in the Bowling Green subdivision and both spoke during the public comment section of the agenda. Putnam asked for a speed bump in the road where there a new townhouses and a swimming pool across the street. The street is curvy and hilly, he said, and he fears an accident where the developer installed a bump-out for traffic calming. Chalona was concerned about the parking allowed in the area, asking that she and others be permitted to park in front of their homes
Two other speakers, Dave Poe with WakeUP Wake County and Wake Forest resident Savannah Beckler, urged passage of the transit plan.
Police Chief Jeff Leonard went forward with two officers near the close of the meeting and introduced them to the commissioners and mayor. Aaron Bitting has been with the town 10 years and was promoted from corporal to sergeant. Patrick Misko came to Wake Forest seven years ago after three years with the Chapel Hill Police Department. He was promoted from detective to corporal.
There was no action after the board returned from a closed session with an attorney to discuss the Ligon Mill Road widening and upgrading project where six of nine affected property owners have agreed to easements and purchase.
